Fundamental Analysis
Tractor Supply Company is the largest operator of rural lifestyle retail stores in America. Founded in 1938 as a mail order tractor parts business, Tractor Supply Company (also referred to as TSC) owns and operates over 1,700 stores in 49 states supplying basic maintenance products to home, land, pet and animal owners. Based in Brentwood, Tenn., Tractor Supply is a public company whose stock is traded on The NASDAQ National Market under the symbol TSCO.
The company was founded in 1938 as a mail order catalog business offering tractor parts to America’s family farmers. Today Tractor Supply is a leading edge retailer with annual revenues of approximately $7.26 billion.
http://ir.tractorsupply.com/about-us/Index?KeyGenPage=1073749530
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see TRACTOR SUPPLY CO makes a margin of 33.5% on Gross Level but only about 4% on Net level This means that out of $1 that it makes $0.04 is being pocketed as profits. This means that the pricing power that the business has is very low among its consumers.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see TRACTOR SUPPLY CO grew at an good rate of 7.6% in the revenue and the net profit figures grew by 18.4%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see TRACTOR SUPPLY CO makes a Return on Assets of 9% and Return of Equity of 22% which is pretty good.
Here we see that TRACTOR SUPPLY CO scores poorly on the Margin front and also in terms of the Revenue growth rate. Although the Dividend are growing at a good rate of 13%. Probably a good investment option once the Gold standard stocks are ticked off the bucket list.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by TRACTOR SUPPLY CO to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
